Lab-grown diamonds, now chemically identical to natural stones, are disrupting the $20 billion diamond industry with prices up to 70% lower. The natural diamond sector, long dominated by De Beers, faces an existential crisis as consumers increasingly prefer sustainable alternatives. Henan province in China has become the epicenter of synthetic diamond production, housing over 80% of global lab-grown facilities according to industry reports.

De Beers, historically controlling 40% of rough diamond sales, is reportedly preparing to sell its iconic brand to a consortium of investors. This potential move, led by Anglo American’s chief executive, signals a strategic retreat from the traditional mining model. Analysts estimate the sale could value De Beers at $12 billion, a fraction of its peak valuation during the 2010s.

FT journalists Eleanor Olcott and Leslie Hook documented production processes in Henan, revealing how laser-cutting technology and chemical vapor deposition now enable mass production of flawless stones. Their investigation highlights labor-intensive processes previously exclusive to artisanal mining, now automated in Chinese factories.

The shift has triggered market consolidation, with Rio Tinto and Alrosa acquiring smaller mines to offset declining natural diamond demand. Investors are dividing over whether De Beers’ sale will stabilize the sector or accelerate its decline. As one executive noted, "The era of natural monopolies is ending," with lab-grown alternatives poised to capture 30% of the market by 2027.